The cost of capital is the rate that must be paid to attract sufficient funds for an investment venture. It is crucial for decision-making in finance, reflecting the opportunity cost of using funds over some alternatives.
Funding a loan involves the process of supplying the agreed-upon amount of money for a loan. After loan approval and commitment, the lender forwards the necessary cash at the closing stage.
Origination, specifically loan origination, refers to the process in which a borrower applies for a new loan and a lender processes that application. This includes various steps such as evaluating the borrower's creditworthiness, completing the application, underwriting, and funding the loan.
